But rapid expansion may be reducing Kors' brand exclusivity. Retail operating profit margin fell to 29.7% from 31.7% a year earlier, though that was a smaller decline than in its fiscal Q4. Kors has had to mark down prices on handbags, clothing and other products.

Kors expects Q2 EPS of 85-87 cents, with revenue of $950 million to $960 million. That's below the forecasts of analysts, who project EPS of 89 cents on $959.5 million in revenue.

Kors shares retreated 5.9% to 77.01 on the the stock market today, hitting a six-month low of 75.13 intraday. The stock has been retreating for the past several months, following margin concerns in its fiscal Q4 report.

Several analysts, including Baird, Sterne Agee and Citigroup, had recently cut price targets on concerns that the bag maker's luxury halo was dimming.

Wholesale sales rose 40% to $406.8 million, and licensing was up 30.5% to $32.1 million.

But retail sales shot up 47.5% to $80.2 million, thanks to 115 net new stores and a 24.2% rise in same-store sales, the company said. As of June 28, there are 443 Kors retail stores, up from 328 last year. There were 605 total Kors stores globally as of the end of Q1.

"We saw continued strength across our retail, wholesale, and licensing segments, as well as in both the North American and International markets during the first quarter," said CEO John D. Idol.

"In North America, revenue increased 30%, with comparable store sales growth of 18.7%." He added that revenue grew 128% in Europe, as the company saw a 54.2% boost in same-store sales in the region. Japanese revenue rose 89%, with same-store sales growing 48.8%.

Meanwhile Coach (NYSE:COH), which has suffered sharply lower profit and sales in the face of Kors competition, reports quarterly results Tuesday. The handbag and accessories maker is trying to overhaul its sales strategy and fashion line, but that will take time. Coach shares rose 1.8% to 34.31, but are essentially trading at four-year lows.

But rapid expansion may be reducing Kors' brand exclusivity. Retail operating profit margin fell to 29.7% from 31.7% a year earlier, though that was a smaller decline than in its fiscal Q4. Kors has had to mark down prices on handbags, clothing and other products.

Kors expects Q2 EPS of 85-87 cents, with revenue of $950 million to $960 million. That's below the forecasts of analysts, who project EPS of 89 cents on $959.5 million in revenue.

Kors shares retreated 5.9% to 77.01 on the the stock market today, hitting a six-month low of 75.13 intraday. The stock has been retreating for the past several months, following margin concerns in its fiscal Q4 report.

Several analysts, including Baird, Sterne Agee and Citigroup, had recently cut price targets on concerns that the bag maker's luxury halo was dimming.

Wholesale sales rose 40% to $406.8 million, and licensing was up 30.5% to $32.1 million.

But retail sales shot up 47.5% to $80.2 million, thanks to 115 net new stores and a 24.2% rise in same-store sales, the company said. As of June 28, there are 443 Kors retail stores, up from 328 last year. There were 605 total Kors stores globally as of the end of Q1.

"We saw continued strength across our retail, wholesale, and licensing segments, as well as in both the North American and International markets during the first quarter," said CEO John D. Idol.

"In North America, revenue increased 30%, with comparable store sales growth of 18.7%." He added that revenue grew 128% in Europe, as the company saw a 54.2% boost in same-store sales in the region. Japanese revenue rose 89%, with same-store sales growing 48.8%.

Meanwhile Coach (NYSE:COH), which has suffered sharply lower profit and sales in the face of Kors competition, reports quarterly results Tuesday. The handbag and accessories maker is trying to overhaul its sales strategy and fashion line, but that will take time. Coach shares rose 1.8% to 34.31, but are essentially trading at four-year lows.

Still striding against the current of fast-fashion competitors and a saturating North American market, Michael Kors' (NYSE:KORS) is expected to report lower-than-usual double-digit earnings and revenue gains when it discloses third-quarter results before the open on Thursday. Wall Street sees a ...

After a solid holiday shopping season in which retailers benefited from lower gas prices and a recovering economy, January brought more upbeat news for the sector, especially among specialty chains like Ulta (NASDAQ:ULTA) — an IBD Leaderboard stock — that were able to keep promotions ...

The maker of brightly colored dresses and handbags will close its Kate Spade Saturday and Jack Spade stores to focus on its core brand while pulling back on promotions as well. Kate Spade (NYSE:KATE) also put 2014 sales at $1.13 bil-$1.14 bil, as growth in comparable sales. Analysts expect $1.1 ...

01/29/2015 06:40 PM ET

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